All Questions
Tagged with compound-interest apy
8
questions
1
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1
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106
views
If APY factors compounding (while APR doesn't), shouldn't APY always be higher than APR?
So, from what I understand:
APR: rate advertised to borrowers (without compounding)
APY: rate advertised to lenders (with compounding)
So, for a loan with APR of 6%, that compounds monthly:
APY = (...
1
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2
answers
1k
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Calculating Effective Annual Interest Rate & Annual Percentage Rate with fees (in R)
Problem
How to calculate Effective Annual Interest Rate (EAR) and Annual Percentage Rate (APR) with fees (in R) ?
I am interested in getting to know how much I am actually paying interest when fees ...
- 69
2
votes
2
answers
502
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Calculate APY given start balance, end balance, and term
I'm having trouble figuring out the formula for calculating APY given a starting balance, ending balance, and term in length of years. What's the formula to do this?
- 173
1
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1
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738
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Calculating APY and compounding rates of investment on Coinbase
So I have been working on determining which is better: the Coinbase apy seen in coins such as DAI (2%), and Algorand (4%) and a bank's apy, say 0.6%. I have the calculations in Matlab, but wanted to ...
- 113
2
votes
2
answers
94
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Calculating daily yields with a different compounding interest
For simplicity's sake, suppose I have an investment that earns 1% daily return on average.
The following day, that 1% earning is immediately rolled over into an account that earns 10% yearly ...
- 245
1
vote
2
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228
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Proper way to annualize returns
Searching for "how to annualize interest rates" on Google leads to the following results:
Wikihow's How to Annualize a Percentage
Investopedia's Annualized Rate of Return
Wikihow
...
- 1,297
2
votes
1
answer
177
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Mistake in Investopedia's article on APY?
My question is about James Chen's article on Investopedia, Annual Percentage Yield (APY), last updated on October 17, 2020.
It begins by correctly stating the formula for APY:
APY = (1 + r / n)^n - 1
...
- 1,297
0
votes
1
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56
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Finding the price of an item years earlier from compound interest, simple interest, or APY
Is there a way to use the compound interest formula, simple interest, or APY to find the price of something years earlier if the price of it was increasing by a certain percentage annually?
